Personal Finance

59% of Gen Z women are confident they'll be financially ready for retirement. Here's why


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While some recent reports have painted Generation Z as taking a relaxed “soft saving” approach to retirement, new research finds this generation is the most confident they’ll be able to retire. Gen Z women are especially optimistic. 

Almost two-thirds, 65%, of Gen Z respondents are confident they’ll be financially prepared for retirement when the time comes, according to the 2023 Planning and Progress Study by Northwestern Mutual. This is the highest percentage of all the generations, compared with 54% of millennials, 45% of Gen X and 52% of baby boomers. 

Gen Z women are particularly confident compared with women of other generations. Nearly 6 in 10, or 59%, of women in this age group believe they will be financially prepared for retirement, versus 43% of millennials, 38% of Gen X, and 48% of baby boomers, the study said.

The results are based on 2,740 conducted interviews among U.S. adults between Feb. 17 and March 2, the study said.

Gen Z includes people born in 1997 or later, according to the Pew Research Center.

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A positive attitude toward planning is behind this generation’s retirement confidence.

“This generation almost has no filter,” said certified financial planner Veronica Fuentes, a managing director at Northwestern Mutual based in Washington, D.C.

“They will say anything that is on their minds and they will ask any questions,” Fuentes said. “They’re just open to people guiding them in the right direction and they’re not scared to ask for help.”

Asking questions gives Gen Zers ‘a leg up’

Gen Z investors are open to taking advice from experts and show a willingness to make changes in their financial plan, Fuentes said.

Members of Gen Z are also more apt to vet financial information they see online or on social media, according to both Fuentes and certified financial planner Clifford Cornell.

Social media “gets the gears turning for people because they’re getting exposure to things they otherwise wouldn’t have, and then they’re able to ask the right question,” said Cornell, an associate financial advisor at Bone Fide Wealth in New York.

In the age of information, financial education is more accessible to Gen Zers than prior generations.

“Our ability to use those tools to our advantage … really gives our generation a leg up. Older generations didn’t really have those tools to use to their ability,” said Cornell.

How to ‘mitigate fear’ and stay on track for retirement

This openness may help Gen Z women speak more comfortably about their finances and take the steps to keep them on track to retire comfortably, advisors say.

“The positivity towards planning is really what drives that,” Fuentes said.

Starting to plan for retirement and investing early helps younger investors make strides to avoid a fear many older, less prepared workers have. On average, Americans say there is a 45% chance they outlive their retirement savings, and 33% haven’t taken the steps to address the possibility, Northwestern Mutual found.

“The top thing you could do to mitigate fear is to start as early as possible,” said Fuentes. “Even if you think a $50 savings into your 401(k) every month is small, something is better than nothing.”

Here are two steps to help:

  1. Regularly revisit your retirement savings plan. Ideally, you ought to revisit your plan every year or so. That helps you make sure you’re on track for your targets, especially if you hope to retire early. Doing so will give you the opportunity to pivot if your goals or timelines change.
  2. Boost your retirement contributions. Most advisors recommend setting aside 15% of your annual pay for retirement. That can seem like a tall order, especially for workers starting out their careers. If you can’t hit that target immediately, aim to regularly boost your contributions. “Really challenge yourself to do better every year,” said Fuentes. Set a new savings target every year. Even a small adjustment of 1% annually has an impact. “That compounding over the year over a 10-year, 20-year, 30-year period is going to make a huge difference,” she said. 



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